The present invention relates to a new and distinct hybrid of Sedum plant named ‘Peace and Joy’ characterized by larger grey green foliage, deeper pink bi-color flowers, taller height, extra number of flowers per stem, and a compact mounding habit compared to the seed parent. The new Sedum was raised as a seedling from hand pollinated seed, with the male parent of Sedum spectabile ‘Neon’ and female parent of an unnamed Sedum tatarinowii, in Hebron, Ill. in 2013. The selection of the new plant was due to its' larger grey green foliage, deeper pink bi-color flowers, taller height, extra number of flowers per stem, and a compact mounding habit compared to the seed parent. Initial asexual reproduction has taken place at a nursery in Hebron, Ill. since 2014 by means of division, and vegetative cuttings. The new Sedum has shown to be stable and identical in reproduction to the originally discovered plant after rooting over 1600 plants from 2014 to 2016. No plants of the new Sedum have been sold in this country, or anywhere in the world, prior to the filing of this application, nor has any disclosure of the new plant been made prior to the filing of this application with the exception of that which was disclosed within one year of filing of this application and was either derived directly or indirectly for the inventor.